While the properties of Bitcoin seemed to have attracted the millennials, the older investors are inclined towards gold. Even though both, Bitcoin and gold have been surging in terms of price, the latter hit a new all-time high.
Bitcoin has often been compared to gold. Properties like limited supply, store of value as well as deflationary nature are what both Bitcoin and Gold have in common. These similarities between these two assets further led to Bitcoin being touted as digital gold. Even though the scale of adoption and the market cap of both these assets have a huge disparity, Bitcoin seems to be climbing up the ladder.
Bitcoin is the largest cryptocurrency in the world, both in terms of market cap as well as value. However, Bitcoin’s market cap seems dainty before gold as the latter has a market cap of around $9 trillion. Bitcoin’s market cap at the time of writing was a mere, $215.48 billion. Gold has undoubtedly been touted as the best medium of investments since time immemorial. Yet, millennials have reportedly been steering towards Bitcoin.
A recent report formulated by the banking giant, JP Morgan Chase & Co., revealed that younger investors were eyeing Bitcoin while the older generation was leaned towards investing in gold. Strategists led by Nikolaos Panigirtzoglou reportedly wrote,
“The older cohorts continued to deploy their excess liquidity into bond funds, the buying of which remained strong during both June and July.”
Furthermore, as per the note, the older generation is selling equities while the younger ones have been eyeing stocks.
Gold Hits New High
Both Bitcoin, as well as gold, have been performing exceptionally well over the last few months. While Bitcoin finally breached the $10K zone and is heading towards $12K, gold has been hitting new all-time highs. On Tuesday, Gold hit a high of $2,000, and just a while ago, it broke its record as its price soared to $2,040 per ounce.
Prominent analyst, Holger Zschaepitz tweeted about the same and elaborated on how investors have been making their way towards gold. His tweet read,
#Gold barrels past $2,000 w/stage set for prices to rally more. Investors flock to haven on sinking real yields, weaker dollar. Bullion is up >30% ytd, & could extend gains as govts & central banks respond to slowing growth with vast amounts of stimulus. https://t.co/wOTaDRY7Yw pic.twitter.com/2eLpodI9Xj
— Holger Zschaepitz (@Schuldensuehner) August 5, 2020